Woyome arrested

The Police have arrested National Democratic Congres financier Alfred Woyome, and is being held at the Police Headquarters in Accra. Joy News reporter Evans Mensah reporting from the Police Headquarters said scores of NDC supporters have besieged the police fortress and demanding the immediate release of Woyome. At least three of them, all women, have been arrested for rowdy behaviour. Castle sources which confirmed the arrest to Joy News said it was in connection with the ongoing financial scandal involving the payment of some GHS58 million in judgement debt to him. Woyome only yesterday resigned his chairmanship of the National Board for Small Scale Industries (NBBSI) to allow for investigations into the matter. The Economic and Organised Crimes Office on Thursday presented an interim report of investigations it conducted on the matter to President Mills, indicting Woyome of wrongfully suing the state when he had no basis whatsoever to do so. More soon

Woyome Can Go To Hell - Allotey Jacobs

Allotey Jacobs Related Stories Central Regional Communications Director of the NDC, Bernard Allotey Jacobs has taken the controversy surrounding the Woyome financial scandal to yet another level by telling Mr. Woyome ‘to go to hell’. According to Allotey Jacobs, he is confident about the position of President Mills that the matter be investigated to expose all the issues involved in the payment of the GHC58million so he cares less about the latest accusation by Mr. Woyome against the Economic and Organised Crimes Office (EOCO). "I don’t care if he goes to court against EOCO, he can even go to heaven if he wants, as long as he thinks he can defend himself,” he said. He disclosed that the NPP is more liable than any official of the NDC in the whole matter and warned the NPP officials who are politicizing the issue to desist from such propaganda because those who are likely to go to jail over the Woyome issue are NPP members and not NDC. Allotey Jacobs denied claims that Mr. Alfred Woyome is an NDC financier because he (Allotey) has never met him nor does he know him to be associated with the NDC but rather the NPP. He challenged the NPP to come out with the grand scheme planned between some members of the NPP and Alfred Woyome at the time the agreement was done between them purposely to ‘chop’ the nation’s money instead of blaming the Mills administration. These explanations notwithstanding, the NPP member of parliament for Ahafo-Ano South, Stephen Balado Manu argued that not only did Mrs. Betty Mould Iddrisu support what he described as the fraudulent payment of money to Mr. Woyome, but connived with other members of government to steal and 'chop' Ghana’s money. He identified government officials to be cited for fraud in the scheme as, Mrs. Mould Iddrisu, Dr. Kwabena Duffour, Finance Minister, Chief of Staff Mr. Newman, Director at the finance ministry, Deputy Attorney General Ebo Barton Odro and President Mills since his office was notified of the payment before it was effected. The NPP MP expressed his disappointment at the former Attorney General, Mrs. Mould Iddrisu adding that even a first year law student would not make such a mistake. “I suspect that the allegation by Herbert Mensah some time ago about the GHC90million came from this Woyome scandal that we are now witnessing,” said Balado Manu. “Ask them if Woyome did not pay for their Sunyani “gargantuan’ congress?” he said repeatedly. The Ahafo Ano South MP said the only way to properly investigate this Woyome issue is to bring it before the Public Accounts Committee of parliament or a commission of enquiry but that suggestion was rejected by Allotey Jacobs who accused the NPP of wanting to influence the case against the government because the Public Accounts Committee is chaired by their member. Source: Afia Pokuaa/Adom News

Jake: Shame, Shame, Shame, That A President’s Directive Can Be So Flouted By Ministers

Prez Mills Related Stories National Chairman of the New Patriotic Party (NPP), Jake Otanka Obetsebi Lamptey, says it is shameful on the part of President Mills to have lied by creating the impression that he had no knowledge of the GHc51m judgment debt which was paid to Mr. Agbesi Woyome. To him, President Mills cannot absolve himself from the controversial payment to Mr. Woyome since he is the leader of government and the report by the Economic and Organised Crime Office (EOCO) is explicit that he (Mills) on two occasions, gave a directive that the monies should not be paid. “…it is a ‘shame, shame, shame, that upon all the powers vested in the president, his directives could be flouted by his own ministers,” he said. Speaking in an interview during PeaceFM News@6 on the Interim Report presented by EOCO to President Mills on the issue of judgment debts, Jake Obetsebi-Lamptey said Alfred Woyome’s case was just a tip of the iceberg. “What we are seeing is the tip of the iceberg; there is a whole waft of different judgment debts that were not contested by this government. Some have been contested by the Kufour government successfully. Mr. Woyome is reported to have said why only him? Why is everybody looking at his payment and not the other payments? But all we saying is that the matter is before parliament, let parliament do a proper investigation so we can expose all of this criminal payments that has been entered into by this government led by his Excellency President John Evans Atta Mills,” he said. The head of EOCO, Mr. Mortey Akpadzi, on Thursday presented an Interim Report to President Mills which stated that Mr. Woyome manipulated documents and information in order to receive what is now termed as “gargantuan” judgment debts paid to an individual. The report said Mr. Woyome rode on the negligence and complicity of public officials to dupe the state of “money which he was clearly not entitled to”, adding that an amount of GhC400, 000 was “paid to the wife of Mr. Nerquaye-Tetteh [Chief State Attorney ] on June 16, 2011” but failed to mention reasons behind that payment. Jake Obetsebi Lamptey Presenting the Interim Report to President Mills at the Osu, Castle, the EOCO Boss revealed that President Mills intervened on two occasions to stop the payment of monies to the embattled NDC bankroller, but his directives were spurned by some officials hence the payment of the GhC51 million. But the NPP National Chair scoffed at President Mills’ reported intervention saying the only intercession made was to sack the immediate past Attorney-General, Martin Amidu when he (Amidu) contested “this terrible gargantuan fraud” in court. “What have been the interventions of the president? One of his interventions seems to be that when his Attorney-General went to court, to go and expose this terrible gargantuan fraud that had been perpetuated upon the good people of Ghana, his reward was to be sacked. So the warning is so clear to the ministers, don’t do anything that I don’t want to hear about,” Jake Obetsebi-Lamptey said.

Source: Chris Joe Quaicoe/Peacefmonline.com

Prez Ordered Ministry Not To Pay "Woyome" Debt, But...

Related Stories It has been established that President John Evans Atta Mills intervened on two occasions and ordered the Minister of Finance and Economic Planning not to effect payment of the judgement debt to Mr Alfred Woyome. According to the interim report of the Economic and Organised Crime Office (EOCO) on the Woyome judgement debt saga, in the first instance, it was on the President’s directive that the Minister of Finance and Economic Planning, Dr Kwabena Duffour, in turn issued instructions to stop the payment. The report, which was presented to the President at the Castle, Osu, Thursday, said it was at that stage that Mr Woyome caused a writ of summons to be issued in the High Court and made claims for the payment of four per cent of 1,106,470,587 euros plus interest and cost. It said on May 24, 2010, Mr Woyome obtained a judgement at the court in the sum of GH¢41,811,480.59 plus interest of five million euros (GH¢9,447,000) and costs of GH¢25,000, making the total amount payable to Mr Woyome GH¢51,283,480.59. “At this stage, the Ministry of Finance negotiated payment terms with the solicitors of Mr Woyome, according to which a first instalment of GH¢7,094,493.53 would be paid not later than the first week of July 2010; second instalment of GH¢17,094,493.53 by the end of July 2010 and the third instalment of GH¢17,094,493,53 by the end of August 2010,” the report revealed. In the second instance, it said before the Ministry of Finance could pay the first instalment of GH¢17,094,493.53, the President ordered the Attorney-General to take action in court to set aside the court’s order. Accordingly, the A-G applied to the court for a stay of execution of the settlement, it said, adding, “The court, however, refused to grant the application and ordered the government to pay according to the settlement reached earlier.” The President, on December 20, 2011, caused a letter to be written to EOCO, directing the office to undertake investigations into the circumstances surrounding the payment of GH¢42 million to Vamed/ Waterville Engineering and Mr Alfred Woyome as judgement debt and give the facts for people to draw their own conclusion. He further directed EOCO “to find the total amount of monies paid out as judgement debts since the present administration took over the reins of government since January 7, 2009 and who the beneficiaries are”. Receiving the interim report, President Mills thanked EOCO for doing a great job for the nation. He said while he appreciated the work and public interest in it, it was “unfortunate that a group of people were unwilling to co-operate with the investigations”. “What we all yearn for is the truth. What is right today will be right tomorrow,” he stressed, saying that the country’s democracy could only progress if all branches were allowed to operate. He expressed concern over the way people had developed different versions of what had become known as “the Woyome gate”, stressing that there could only be one truth. President Mills directed the Attorney-General to study the report and advise him in the interest of “truth and justice and for the benefit of the people we swear to protect”. The Attorney-General and Minister of Justice, Dr Benjamin Kunbuor, expressed the belief that the report would put to rest the issues surrounding the saga, saying, “We will study the report and get back to you, Mr President.” The Executive Director of EOCO, Mr Mortey Akpadzi, presenting the report to the President, said on December 19, 2011, before President Mills’s directive to the anti-graft body to investigate the Woyome issue, he (Mr Akpadzi) had received a petition from Mr Benjamin Akyena Brentuo requesting the office to investigate former President John Agyekum Kufuor and the Cabinet of 2005/2006 for wilfully causing financial loss to the state. He said the basis for the petition was that the Kufuor administration had made the government to unnecessarily pay a judgement debt of approximately GH¢52 million to Mr Woyome as a result of the illegal abrogation of the tender process for the construction of stadia for the CAN 2008 football tournament.

EOCO Report: Woyome Manipulated Documents; Paid State Attorney’s Wife GhC400k

Woyome     Related Stories   The embattled NDC financier Alfred Woyome manipulated documents and information in order to receive the controversial GhC51 million judgment debt, the interim report of the Economic and Organised Crimes Office (EOCO) revealed. A copy of the EOCO report in the custody of Citifmonline. com, which was presented to the President of Ghana, John Evans Atta Mills on Thursday, said Woyome rode on the negligence and complicity of public officials to dupe the state of “money which he was clearly not entitled to. ” To buttress its evidence that public officials or those associated with them connived with Woyome to milk the country, the EOCO report established that an amount of GhC400, 000 was “paid to the wife of Mr. Nerquaye-Tetteh [Chief State Attorney ] on June 16, 2011” but failed to mention reasons behind that payment. According to the damning report, although the Chief State Attorney, Mr. Nerquaye-Tetteh, who was directly in-charge of the case for the Attorney-General’s department, had argued that the government did not have a defense to fight the case and for that matter halt the payment that was totally false. The report said: “There were however enough grounds to defend the action but this was not done. In the files at the AG’s department could be found a lot of evidence which indicated clearly that at the least, Mr. Woyome could not establish his case. ” EOCO said the former Attorney-General and Minister for Justice Betty Mould-Iddrisu, who resigned recently from government as education minister – the one who undertook all the judgment debt negotiations – “should have made sure that the suit in court was defended. ” The report also cited the director of legal affairs at the Ministry of Finance and Economic Planning, Mr. Paul Asimenu, as the “person who wrote the opinion which eventually led to the decision that Mr. Woyome was entitled to his claim. ” It stated that during interrogations, Mr. Asimenu “admitted that the figures he quoted in his advise as the basis of the evaluation by the finance committee of the CTRB [Central Tender Review Board] on which he served was wrong and that he misled the Hon. AG. He also admitted that he went further to give personal advise to the AG on the correctness of the claim since it was international best practice. ” “Mr. Asimenu assumed a role which helped in creating the conditions which made it possible for Mr. Woyome to get paid what he clearly was not due,” the EOCO report established. The NDC financier was awarded the whopping sum in 2010 after having made a case that the erstwhile Kufuor administration wrongfully terminated his contract to build stadia ahead of the 2008 Africa Cup of Nations in Ghana. In that direction, a former minister under the Kufuor administration Yaw Osafo-Maafo, who served as a sports minister then, has been mentioned in the report as the “author of the Cabinet Memo dated 27th July, 2005, which informed Cabinet of the illegality of the intended action to abrogate the tender process for the CAN 2008 stadia works. ” “However, he was the same person, who knowing that it was illegal to terminate the process at the stage it had reached, went ahead and wrote terminating it. It is yet to be fully established however, whether it was Cabinet, which in spite of being warned about the illegality of the act or abrogating the tender process, ordered the abrogation,” the report noted. It questioned why payments were made out of the consolidated fund for contracts which had been signed with foreign entities, adding that “the investigations are yet to determine whether or not the contracts were subjected to Parliamentary approval. ” It stated further: “Then again, the refusal by the previous administration to pay Waterville when it had been clear that Waterville had done some work at the instance of the government has led to a situation where interest accrued and loss of profit had to be paid for after mediation. “Mr. O. B Amoah was the Deputy Minister, who gave the green light for Waterville to proceed to site and start work at a time the contract had not been approved by Parliament. ” Following huge public outcry and media scrutiny, President Mills ordered the national investigative outfit to look into the facts that led to the payment of the amount, which the opposition NPP has described as the biggest loss to the state in the political history of the country. On different platforms President Mills has denied knowledge of the payment of the judgment debt to his party’s financier, however, the EOCO report said “…before the MOFEP [Ministry of Finance and Economic Planning] could pay the first installment of GhC17,094,493. 53 as agreed, His Excellency, the President ordered the Attorney General to take action in court to set aside the court’s order and accordingly, the AG applied to court for a Stay of Execution of the settlement. The court, however, refused to grant the application and ordered government to pay according to the settlement reached earlier. ”       Source: citifmonline

A-G ordered Woyome payment; Duffuor tells Mills

Dr. Kwabena Duffuor, Finance and Economic Planning Minister. In the wake of the ongoing controversy surrounding ‘the Woyome judgment debt payment saga’, The New Crusading GUIDE has intercepted a document which indicates that the Ministry of Finance and Economic Planning was virtually ‘pressurized’ by the Attorney General (AG) in a letter dated April 29, 2010, to pay Mr. Alfred Agbesi Woyome “what was due him.” In an official letter addressed to the President through the Chief of Staff at the Osu Castle, the Finance and Economic Planning Minister, Dr. Kwabena Duffuor, mentioned that his ministry, by a letter dated April 12, 2010, asked the AG to clarify the petitioner’s (Woyome’s) claim of right to the amount. Dr. Duffuor, in his letter titled: “report on payment of judgement debt to Mr. Alfred Agbesi Woyome”, informed the Office of the President that “the Attorney General specifically advised that the claim for 2% of the total value of the project that Mr. Woyome and Austro-Investment engineered, which they have agreed should be paid to Mr. Woyome, was in order and thus recommended that the Ministry of Finance and Economic Planning should pay the amount due.” It will be recalled that President Mills, in an interview with an Accra-based radio station, Radio Gold on the Woyome saga, announced that he had ordered the two ministries involved - the Attorney General’s Department and the Finance Ministry - to give him a report, which would be published “so that the world would know what happened.” The Finance Minister’s letter (published on page 2) in response to the President’s directive, went on to explain to him (President) that “as a result of this ministry’s refusal to comply with the above, the Attorney General followed up with letter dated 28th may, 2010 stating that as a result of the position taken by the ministry of finance and economic planning, Mr. Woyome had gone to court and obtained judgment on 24th may in the sum of GHS 25,000.00, giving a total of GHS 51, 283,480.59.” According to the correspondence which is dated January 6, 2012, the Minister, among other things, recalled that his Ministry went ahead to negotiate with solicitors of Mr. Woyome to pay the money in three equal installments. “Even as the Ministry was in the process of paying the first installment as agreed during the first week in July, 2010, the Attorney General surprisingly went to court for a stay of execution which was refused on 9th July, 2010,” the Minister submitted in his letter - which was also copied to the Vice President, John Dramani Mahama. Meanwhile, a copy of the said AG’s letter which directed the Finance Ministry to make the payment partly reads, “it will be recalled that the claim is for project financial engineering fees by Mr. Woyome and Austro-Invest. The financial arrangements were made in respect of the concurrent approval given by the central review board for the award of contract to Vamed Engineering, who transferred its rights in the project to waterville holdings (copies of letter of transfer and acceptance attached) and (copy of letter of central tender review board dated 5th august 2005 attached). It was in these circumstances that the then government terminated the entire process.” The AG, in his letter which is also available to this paper said, “it is my opinion that this letter dated 5th August 2005 formed the basis of a binding agreement between Vamed and the government of Ghana and the process having been terminated wrongfully by the government, the claimants were entitled to compensation for services rendered.”

Woyomegate: Letter from Betty Mould to Dr. Duffour on 29th April, 2010

The Hon. Minister
Minister of Finance & Economic Planning
Ministries, Accra

Attn: Dr. Kwabena Duffour

SETTLEMENT OF CLAIMS INVOLVING THE REHABILITATION OF THE OHENE DJAN, BABA YARA AND EL WAK SPORTS STADIA This is in response to your letter dated 12th April, 2009.

In that letter, you stated that Austro-Invest by its letter dated 16th February 2010 indicated that it is prepared to accept one percent (1%) of the total value of the project as compensation and that Austro-Invest had agreed with Mr. Alfred Woyome for the amount to be divided between them.

You also stated that you have a copy of a petition by Mr. Woyome in which be makes a claim for two percent (2%) of the total value of the project, to be shared between Mr. Woyome and Austro-Invest.

Furthermore, you indicated that your Accounts Office require clarity and evidence on the supporting documentation with regard to whether the claim is being made by the consortium that won the bid to conduct the financial engineering led by Mr. Woyome, jointly or separately.

Further to a Ministry of Finance letter dated 4th May 2005, Mr. Woyome made arrangements for the grant of concessional loans for the rehabilitation of the Ohene Djan and Baba Yara stadia and the construction of three others for the Ghana 2008 football tournament, the construction of six (6) hospitals and the Cobait to Irradiation Plant among others.

Mr. Woyome’s role in project financial engineering is further evidenced by the letter from the Ministry of Education and Sports dated 5th July 2005 and an earlier letter from the then Minister for Environment and Science, Prof. Kasim Kasanga dated 28th October 2004. In addition, Mr. Woyome together with Waterville set up offices in Vienna, Austria and Washington D.C. Italy and Switzerland as part of the project financial engineering work for the projects in Ghana (copies of letters attached). It can be seen from the available documentation that Mr. Woyome, as Alternate Director of M-Powapak at the time, acted as the principal party in discussions with government officials to facilitate the financial engineering of the projects.

Mr. Woyome then entered into an agreement with Austro-Invest on 1st September 2005 (copy attached) in which the Parties agreed to formalize their collaboration into a working business relationship for their mutual and common benefit. The agreement provided that Austro-Invest shall offer service relating to syndication of funds from financial institutions as part of the financial structuring and acquisition of projects by Mr. Woyome. The Parties also agreed that Mr. Woyome will pay Austro-Invest up to 15% of the total amount syndicated. This figure was subsequently negotiated downwards to 1% for Austro-Invest in the 16th February 2010 agreement.

Mr. Woyome’s role, as district from Austro-Invest’s role which was mainly for the syndication of funds, is further evidenced by correspondences with international financial institutions such as the Export-Import Bank of the United States and the Final Demand Letter of J. Michael Farrell, a Washington-based lawyer, who worked on Mr. Woyome’s instructions in respect of a contract involving Austro-Invest (copy of Demand Letter attached).

Mr. Michael Farrell has recently threatened to institute legal action against Mr. Woyome and the Government of Ghana for non-payment of legal fees relating to his work for Mr. Woyome (copy attached). Mr. Woyome has on 19th April 2010 also instituted a civil action against the Attorney-General and the Ministry of Finance to compel the Government of Ghana to pay him GH¢41,811,480.59 being the cost of financial engineering owed to him, interest on the said sum from September 2006 till date of payment and genera damages for the inconvenience suffered by him for the delay in paying the financial engineering fees.

I wish to state therefore that the claim for the payment of two percent (2%) of the total value of the project was made by Mr. Alfred Woyome and Austro-Invest jointly and severally. Mr. Woyome’s claim is for one percent (1%) of the total value of the project engineering fees whilst the claim for Austro-Invest is also for compensation of one percent (1%) of the total value of the project financial engineering fees.

I wish to repeat here that the two percent (2%) that I recommended should be paid Mr. Woyome and Austro-Invest jointly and severally, but in the name of Mr. Woyome in accordance with their agreement of 16th February 2010, was arrived at through negotiations with Mr. Woyome. It is hoped that settlement of this matter through negotiations will forestall the legal action and the huge financial costs that will be incurred as a result of the payment of interest and damages.

Mr. Woyome, by his petition dated 18th February had indicated that the normal percentage charged for such project financial engineering is four percent (4%), but it was negotiated down to two percent (2%) by Government. I requested for the input of the Building Industry Consultants Limited, Mr. Magnus Rex Danquah and the Ministry of Finance to enable me make an informed decision with regard to what should be paid as compensation. It was based on the information received that I gave the opinion dated 31st March 2010 and the subsequent opinion dated 11th April 2010.

It will be recalled that the claim is for project financial engineering fees by Mr. Woyome and Austro-Invest. The financial arrangements were made in respect of the concurrent approval given by the Central Tender Review Board for the award of contract to Vamed Engineering, who transferred its rights in the project to Waterville Holdings (copies of letter of transfer and acceptance attached) and (copy of letter of Central Tender Review Board dated 5th August 2005 attached). It was in these circumstances that the then Government terminated the entire process.
It is my opinion that this letter dated 5th August 2005 formed the basis of a binding agreement between Vamed and the government of Ghana and the process having been terminated wrongfully by the government, the claimants were entitled to compensation for services rendered.

The claim for two percent (2%) of the total value of the project that Mr. Woyome and Austro-Invest financially engineered, which they have agreed should be paid to Mr. Woyome is therefore in order, hence my recommendation that you authorize payment of the amount due. Your Ministry may, however, negotiate with Mr. Woyome regarding the modalities for the payments of the amount due him.

Finally, I am making available to you the enclosed documentation from the Solicitor for Mr. Woyome for your records. I hope the documents will be of some relevance to you.

Betty Mould Iddrisu (Mrs)
Attorney-General
Minister for Justice
29th April, 2010

cc:

The Chief of Staff
Office of the President
The Castle –Osu

The Deputy Ministers
Ministry of Finance & Economic Planning

The Ag. Chief Director
Ministry of Finance & Economic Planning

The Director, Legal
Ministry of Finance & Economic Planning

Woyomegate: Did Dr. Duffour's letter to Mills expose, implicate Betty-Mould?

Dr. Kwabena Duffour REPORT ON PAYMENT OF JUDGEMENT DEBT TO MR. ALFRED AGBESI WOYOME  *1: I refer to your letter on the above subject matter dated December 15, 2011. *2: Available records show that Government in conjunction with the  Local Organizing Committee (LOC) for the Ghana 2008 Football tournament advertised for Expressions of Interest in year 2005. The tender was to be awarded on Turnkey basis including the arrangement of requisite financing for the project. *3: Following the receipt of financial offers, a Finance Sub–Committee with representation from the Ministry of Finance evaluated the financial bids and made recommendations on most competitive bid to the Hon. Minister for Education and Sports. The Committee recommended the bid submitted by Vamed Engineering. The technical bids were evaluated separately by the then Ministry of Education and Sports. *4: The records also show that the Ministry of Education and Sports entered into a Memorandum of Understanding with Waterville Holdings and Micheletti (Gh) Ltd. on November 30th, 2005 for the turnkey, design, construction, fixtures, fittings, and equipping of the Ohene Djan Accra and the Construction of an 8–Lane athletic track at El- Wak Stadium. *5: On 26th April 2006, formal contracts were signed between the parties. *6: In early 2010, the Honourable Attorney General informed this Ministry of a petition filed by Mr. Woyome for payment of compensation for the cost of financial engineering on mobilization of funds for the staging of the CAN 2008 Football Tournament (See Appendix 1). *7: By a letter dated 31st March, 2010, the Hon. Attorney General informed this Ministry that a settlement had been reached with Mr. Woyome and requested the Ministry to pay 2% of amount claimed (GH¢1, 106,470,587.00). *8: The Ministry of Finance and Economic Planning by letter dated 12th April, 2010 asked the Attorney General to clarify the petitioner’s claim of right to the amount. (See Appendix 2). *9: The Attorney General reverted on 29th April, 2010 with the explanation that Mr. Woyome’s claim was supported by documentation including letters from the Ministry of Education and Sports. The Attorney General specifically advised that the claim for 2% of the total value of the project that Mr. Woyome and Austro–Invest engineered, which they have agreed should be paid to Mr. Woyome, was in order and thus recommended that Ministry of Finance and Economic Planning should pay the amount due. The Ministry was also mandated to negotiate with Mr. Woyome on modalities for the payment of the amount (See Appendix 3) *10: As a result of this Ministry’s refusal to comply with the above, the Attorney General followed up with letter dated 28th May, 2010 stating that as a result of the position taken by the Ministry of Finance and Economic Planning, Mr. Woyome had gone to Court and obtained judgment on 24th May, 2010 in the sum of GH¢ 41,811,480.59 plus interest of Euro 5 million (GH¢ 9,447,000.00) and cost of GH¢ 25,000.00, giving a total of GH¢51, 283,480.59 (See Appendix 4). *11: At this stage, Ministry of Finance negotiated with the Solicitors for Mr. Woyome to pay the money in three equal installments as follows: *1st installment: GH¢17, 094,493.53 to be paid not later than the first week of July 2010 *2nd installment: GH¢17, 094, 493.53 due by end of July 2010 *3rd installment: GH¢17, 094, 493.53 due by end of August 2010 (See Appendix 5) *12: Even as the Ministry was in the process of paying the first installment as agreed during the first week in July, 2010, the Attorney General surprisingly went to court for a stay of execution which was refused on 9th July, 2010 (See Appendix 6). The court ordered as follows: *Judgment Debt – GH¢41, 811,480.59 *Interest from September 2006 to April 2010 – GH¢9, 447,000.00 *Costs – GH¢25, 000.00 -TOTAL – GH¢51, 283,480.59 *13: Subsequent to the refusal of the stay of execution application, the Attorney General filed a writ and obtained a partial stay of execution of the terms of settlement. In granting the partial stay, the Judge ordered that the first installment of GH¢17, 094, 493.53 that was due Mr. Woyome on 30th June (payable in the first week of July) plus interest thereon be paid pending the final determination of the suit. The Court also ordered that Mr. Woyome give an undertaking to refund the money paid him should he lose the case (See Appendix 6). *14: In a letter dated 7th December, 2010 from the Solicitors of Mr. Woyome to the Attorney-General which was conveyed to this Ministry by the Attorney-General on 9th December, 2010 the Ministry was informed that a pre-trial settlement conference had taken place and an understanding reached that the parties should attempt an out of Court settlement (See Appendix 7). In the letter under reference, the Attorney-General asked the Ministry of Finance and Economic Planning to honour the terms of settlement including the balance of GH¢34,188,987.06. *15: In view of the heavy burden on public finances, the Ministry negotiated a phased payment of the debt by installments. This was fully settled between January 2011 and September 2011. The breakdown of the installment payments are outlined below: ---*1. January 27, 2011---------GH¢10,000,000.00 ---*2. April 8, 2011------------GH¢10,000,000.00 ---*3. September 12, 2011-------GH¢14,188,987.06 Total-------GH¢34,188,987.06 *16: The Ministry has recently been served with copy of a suit on the payment of additional interest on the judgement debt. The suit is being defended by Honourable Attorney-General. *17: Enclosed are copies of the relevant documents including the report of the finance bid evaluation committee, the MOU and Contract. *18: Please revert to us if you require any further clarification on matters outlined above. DR. KWABENA DUFFOUR MINISTER 6TH January, 2012 cc: H.E. The President, Castle - Osu H.E. The Vice President, Castle – Osu Source: The New Crusading Guide

DUFFUOR WARNED BETTY …Over Fraudulent Woyome payment

From Sebastian R. Freiku, Kumasi

Dr. Kwabena Duffour

THE CHRONICLE has sighted a document emanating from the Ministry of Finance and Economic Planning, in which the Sector Minister, Dr. Kwabena Duffuor asked the then Attorney General and Minister for Justice to do due diligence in the authorization of the  payment of  1,106,470,587.00 Euros to Alfred Agbesi Woyome.

The six-paragraph caution letter said by inference that due diligence was necessary for audit purposes.

It was revealed that the payment of the GH¢58 million to Alfred Woyome was upon the insistence of Mrs. Betty Mould Iddrisu as the Attorney General and Minister for Justice.

Dr. Duffuor, who was responding to a letter of March 31, 2010, by Mrs. Betty Mould Iddrisu,   requested for clarity and evidence and an advice on the implication of a purported agreement  between Austro-Invest Management and Mr. Woyome, and any further documentation that  substantiated Mr. Woyome’s claim.

He also wanted to be informed as to whether the claim is being made by the consortium that won the bid to conduct the financial engineering led by Mr. Woyome jointly or separately.

In a correspondence dated April 12, 2010, the Finance Minister had drawn the attention of the former Attorney General to queries raised by the Accounts office of the Ministry, regarding supporting documentation for the claim, involving the rehabilitation of the three sports stadia, namely Ohene Djan, Baba Yara and El-Wak.

Mrs. Betty Iddrisu, in defending the payment of the amount had attached a letter of February 16, 2010, in which Austro-Invest announced its preparedness to accept 1% of the total value of the project as compensation, which also stated that the amount should be divided between Austro-Invest and Woyome.

She also furnished the Finance Minister with a petition by Woyome, which claimed 2% of the total value of the project, 1% for Austro-Invest and 1% for Woyome.

In response to the concerns raised by the Finance Minister, Mrs. Betty Mould Iddrisu in a letter of April 29, 2010, advised that Woyome’s claim was in order and recommended the authorization of the payment of the amount, due jointly and severally to Mr. Woyome.

She advised that the Ministry should negotiate the modalities for the payment of the amount with Mr. Woyome. Mrs. Betty Mould Iddrisu referred to a letter of the Central Tender review Board dated August 5, 2005, which in her opinion formed the basis of a binding agreement between Vamed and the Government of Ghana.

She said the process, having been wrongfully terminated by the Government, the claimants were entitled to compensation for services rendered.

Defending her position, the former Attorney General referred to a Ministry of Finance letter of May 4, 2005, and said Mr. Woyome made arrangements for the grant of concessional loans for the rehabilitation of the Ohene Djan and Baba Yara stadia, and three others for the Ghana 2008 football tournament, the construction of six hospitals and the Cobalt 60 Irradiation Plant, among others.

She said Mr. Woyome’s role in project financial engineering is further evidenced by a Ministry of Education and Sports of July 5, 2005, and an earlier letter of October 28, 2004, from the then Minister for Environment and Science, Prof. Kassim Kasanga.

In further support of Woyome’s claim, Mrs. Betty Mould Iddrisu indicated that Woyome, together with Waterville set up offices in Austria (Vienna), U.S.A. (Washington DC), Italy and Switzerland, as part of the project financial engineering work for the projects in Ghana, and that as Alternate Director of M-Powapak at the time, Mr. Woyome acted as principal party in discussing with government officials to facilitate the financial engineering of the projects.

Subsequently, Woyome entered into an agreement with Austro-Invest on September 1st, 2005, in which the parties agreed to formalize their collaboration into a working business relationship for their mutual and common benefit, which agreement provided that Austro-Invest shall offer services relating to syndication of funds from financial Institutions, as part of the financial structuring and acquisitions of projects by Mr. Woyome.

According to Mrs. Betty Mould Iddrisu, even though the parties agreed that Mr. Woyome will pay Austro-Invest up to 1.5% of the total amount syndicated, the figure was subsequently  negotiated downwards to 1% for Austro-Invest per the said February 16 2010 agreement.

Mrs. Betty Mould Iddrisu further indicated that Mr. Woyome’s role, which was mainly for the syndication of funds, quite different from that of Austro-Invest, is evidence by correspondences with international financial Institutions, such as the Export-Import Bank of USA and the final demand letter of a Washington-based lawyer, Mr. Michael Farrell, who worked on Mr. Woyome’s instructions in respect of a contract involving Austro-Invest.

The Attorney General hoped that the settlement would forestall huge financial costs as a result of payment of interest and damages.

Also in response to a concern by the Finance Minister, Mrs. Betty Mould Iddrisu, in another correspondence  dated May 28, 2010,  and headed: “RE; Alfred Agbesi Woyome v The Attorney General & the Ministry of  Finance  and Economic Planning”,  said she  scheduled a meeting with Mr. Woyome and  his solicitors with  regards to  the breach of the agreement by the  Government of Ghana to pay the negotiated amount of GH¢41,811,480.59 during which Mr. Woyome indicated preparedness to accept the amount of GH¢41,811,480.59 based on the 2%  originally agreed upon.

The Attorney General insisted that the Government pays Mr. Woyome and Austro-Invest the negotiated amount of GH¢41,811,480.59 to resolve the matter once and for all. “It is still my position that we pay Mr. Woyome and Austro-Invest the negotiated amount of GH¢41, 811,480.59”, she stated.

Mrs. Betty Mould Iddrisu’s letters of April 29, 2010, and May 28, 2010, were copied to the Chief of Staff for the attention of Mr. J.H. Martey-Newman.

The Law, the People and the Republic: The importance of ethics in a functioning democracy

                             

The last few months have been colored by events in the beloved republic of Ghana which demonstrate how ethically challenged we are as a nation. There is no perfect nation but when problems occur as they invariably do, in most places it is understood that the laws of the land simply go into effect without fear or favor. That is, no single person is bigger than the nation or its laws.

For those of us who have constantly highlighted the cost of ethical compromises to our society at many levels, the actions of persons in leadership when problems arise, can only be described as self – serving, ineffectual or at times sad and pathetic. The cost of not enforcing laws and regulations can found daily in lost lives, declining educational standards, unplanned development, and persistent poverty.

It is also well established that we are a poor country only as a result of our own choices and our failure to act decisively in enforcing our own laws from the district level all the way up the chain of authority. This has been the case right from the first republic and all the others in between. We have nurtured a culture of excuses, exceptions, delays, obfuscations and outright marginalization of our own laws and now the proverbial chickens are coming home to roost.

As long as our laws are compromised by political imperatives, Ghana will continue to fall short of her potential. The level of determination in leadership required to bring about this cultural transformation has eluded both our major political parties to the extent that neither has the moral standing to criticize the other. Now we have a case in “Woyomegate” in which both sides of the political aisle are dancing on the head of a pin, largely because of an apparent shared culpability. The situation calls for decisive leadership guided by the rule of law and not political expediency. It demands the political will necessary to take casualties for the greater good on both sides of the political divide. How long must we wait for principled leadership from Government? I use “government” in the true sense; including the governing party, the loyal (to the constitution) opposition, the executive branch, and the judiciary along with law enforcement agencies.

We should be reminded that the electorate votes with the expectation that leadership on difficult issues will be forthcoming as necessary. The courage to defend the constitution without fear or favor is crucial at this time. We will soon know if the Attorney – General’s contribution to the discourse raises expectations to the appropriate level. In the final analysis, all of this is happening on President Mills’ watch and decisive leadership rooted in the rule of law must come from him. He must take the initiative and lead the nation with total transparency, letting the chips fall where they may.

This case is occurring against a background of losses to the state, in the amount of about GHS 600 million, said to have been incurred by the erstwhile NPP government. This degree of liability, apparently from arbitrarily abrogated contracts, deserves a commission of inquiry which should result in prosecutions if crimes against the state have been committed. The people of Ghana have been gravely injured by their leaders and they should seek the appropriate legal remedy.

The situation also raises the question of a third party which might rise like a phoenix above this disturbing morass. The CPP won only 1.3% of the presidential vote in 2008. The new PPP under the leadership of Dr. Nduom has emerged from it and just as the CPP itself was born out of the UGCC. This development may mark a watershed event in Ghanaian politics. Given the steep climb required to succeed in 2012, the PPP has its work cut out for it but the coming months will determine whether the new party on the left will become a significant player in the politics of the future in which the rule of law should form the basis of Ghanaian life and national development.

There are so many issues begging for decisive action aided by a trustworthy legal process. Recent issues include the matter involving the chemical miracle of converting cocaine to baking soda in the Courts vs. the Police in which charges have finally been laid. There are also perennial problems of illegal buildings on proposed roads and drainage routes leading to lost lives and diminished productivity. Illegal encroachment of state lands continues without manifest interventions. Chiefs pervert land tenure aided by unscrupulous lawyers to thwart investors who create jobs in numerous communities. Foreigners are abusing our citizens in places of employment with impunity because they know that we do not respect and apply our own laws in Ghana. There are now neo- apartheid establishments in our country that have dared say Ghanaians need not enter. We have created the climate for such abuses to occur in our country. We are rapidly becoming a lawless society and the consequences will be destructive to the society and future generations.

Our failure to abide by our own regulations and laws has clouded all aspects of societal function. The education system is in a veritable crisis. Maternal mortality is unacceptably high and basic issues of sanitation are not addressed largely because of continued unpunished corruption and a clear lack of accountability even when lives are lost due to professional negligence and the failure of the state to provide for the basic needs of its citizens. Our leadership class must aspire to the highest levels of accountability to those they are elected to serve. Something has to give. Continuing in a culture where those who wish to abide by and apply the law are disparaged and threatened does not augur well for the future.

The seeds of true citizenship and are sown early within the formal educational experience and reinforced by life experiences. Ethical behavior is nurtured by the state. It does not develop in a vacuum. We are at a critical stage in our development where ethical conduct rather than oil should be the currency of the state. Ghana is ours to build or destroy and our future rests on the quality of our culture of leadership.

Prof. T. P. Manus Ulzen

tulzen@yahoo.com

1/17/2012